The Bangko Sentral ng Pilipinas Tacloban branch. (PNA photo by Sarwell Meniano)
TACLOBAN CITY -- At least 65 percent of towns in Eastern Visayas (Region 8) have no banks, making the region one of the most unbanked areas in the country, according to the Bangko Sentral ng Pilipinas (BSP).
As of June 29, some 89 out of 136 towns in six provinces have no banks, raising concern that people are deprived of access to and usage of formal financial products and services.
Maria Jocelyn Ladero, BSP Tacloban acting deputy director said that unbanked areas are being served by non-bank financial service providers such as microfinance institutions, cooperatives, pawnshops, money service businesses, and electronic money agents. The operation provides financial services in unbanked areas.
“BSP continues to advance its financial inclusion agenda with digital innovations as a catalyst and strategic enabler. The BSP has liberalized regulations to allow banks to expand the reach and develop innovative products,” Ladero told the Philippine News Agency (PNA) on Wednesday.
These products include the use of branch-lite units and cash agents as cost-efficient service delivery channels and the introduction of basic deposit accounts (BDA).
“The minimum key features of the basic deposit account include simplified know-your-customer requirements; an opening amount of less than PHP100; no minimum maintaining balance; and no dormancy charges,” Ladero added.
The bank official said banking services are expected to be more conveniently accessible with the BSP regulation cash agents, which allows the use of retail outlets like grocery stores and pharmacies as low-cost, convenient and non-intimidating touch points for poor families.
As of this week, there are 15,000 cash agents where people can perform deposit and withdrawal transactions, fund transfers, and bill payments.
The number of unbanked towns in the region has actually declined from 104 areas in 2014 and 95 in 2017.
Of the 89 "unbanked" areas, 20 are in Leyte, 21 in Northern Samar, 17 in Samar, 13 in Eastern Samar, 12 in Southern Leyte, and six in Biliran province, according to a list provided by the BSP Tacloban province.
Northern Samar, the farthest province from the regional capital, is the most underbanked in the region with 21 out of 24 towns having no access to banking services. (PNA)
